The changes include the launch of the TPD Support Option, which alters how certain TPD claims are paid, and amendments to income protection designed to better reflect the working realities of small business owners and contractors. The insurer said the updates were informed by customer research, adviser input and clinical insights.
The TPD Support Option applies to a defined set of mental health, chronic fatigue and functional conditions where recovery outcomes can be uncertain or prolonged. Rather than paying a full lump sum upfront, the option provides payments of 20 per cent of the insured amount each year, subject to the claimant continuing to meet the TPD definition at annual review. Over time, this structure can result in the full sum insured being paid if the individual does not recover.
Claims relating to conditions outside the specified categories continue to be paid as a full lump sum under existing TPD arrangements.
During the claims process, customers may also be referred to recovery and wellbeing services through the insurer’s existing health support framework, although access to these services does not alter claim eligibility or benefit structure.
“Our focus is on ensuring TAL’s products reflect how Australians live and work today and deliver genuine value,” said Gavin Teichner, chief executive – individual life at TAL.
“We’ve taken an evidence-based approach with these changes to Accelerated Protection to ensure meaningful support for those who need it, while maintaining value for all our customers.”
According to the insurer, the revised TPD structure is intended to better align financial support with the variable recovery paths often associated with certain conditions, while retaining long-term protection where a return to work is not possible.
“The TPD Support Option recognises that recovery is rarely straightforward,” Teichner said.
“Some people can return to work with the right support and treatment, while others cannot. Its flexible approach helps people through their recovery journey while maintaining strong financial protection for those permanently unable to work.”
In addition to the TPD changes, TAL has updated income protection features for self-employed customers. These include revised offset rules for ongoing income and changes to waiting period conditions that allow limited administrative or business-maintenance tasks to be performed without affecting claim eligibility.
The insurer said the adjustments were designed to reflect the operational realities faced by business owners when illness or injury prevents them from working in their usual capacity.
The changes apply to new policies issued under Accelerated Protection and form part of a broader trend across the life insurance sector toward more tailored product design, particularly for customers with non-standard working arrangements.
